Siemens hit by graft case in Kuwait, arrests likely

Munich, June 10, 2011

Siemens, a global powerhouse in electronics and electrical engineering, operating in the industry, energy and healthcare sectors, said it had discovered evidence of corruption at its business in Kuwait and had involved authorities.

'We uncovered the case ourselves, involved the authorities and took disciplinary measures,' a spokesman for the company said on Friday.

German daily newspaper Financial Times Deutschland earlier cited a senior prosecutor in Munich as saying arrests had been made in connection with a fresh investigation at Siemens.

The paper cited judicial sources as saying at least two managers had been arrested, and an arrest warrant has been issued for a third manager who had worked in Kuwait. The prosecution in Munich was not immediately available for comment.

Siemens was embroiled in Germany's biggest post-war corporate corruption scandal that started in 2006, culminating in about 1 billion euros ($1.46 billion) in fines and penalties and the departure of its chairman and chief executive.

'One-off cases can never be ruled out, but we can rule out systematic misconduct,' the spokesman for Siemens said.

Shares of Siemens were 0.2 per cent lower at 91.04 euros by 0714 GMT, in line with Germany's blue-chip index.-Reuters